H.B. No. 249 proposes amendments to the Texas Tax Code to clarify and streamline the appraisal process for real property regarding ad valorem tax purposes. The bill modifies Section 1.12(d) to clarify the appraisal ratio for properties under Section 23.23, removing references to Section 23.231, and repeals a previous amendment to Section 1.12(d) that was set to take effect in 2027. Additionally, the heading of Section 23.23 is updated to indicate it applies to "real property" rather than just "residence homestead." New subsections are introduced to outline conditions under which appraisal offices can increase property values, including caps on increases and provisions for property transfers between spouses.

Furthermore, the bill defines "new improvement" and clarifies that limitations on appraised value apply to all real property, including qualifying manufactured homes. It also includes provisions for the expiration of appraisal limitations under certain conditions, such as ownership transfers, and repeals several previous amendments set to take effect in 2027. The bill will apply to property appraisals for tax years beginning on or after January 1, 2026, contingent upon voter approval of a constitutional amendment that would allow the legislature to limit the maximum appraised value of real property to 105 percent or more of the previous year's value. Overall, H.B. No. 249 aims to provide clearer guidelines and benefits for property owners in Texas.

Statutes affected:
Introduced: Tax Code 1.12, Tax Code 23.23 (Tax Code 1, Tax Code 23)